Schaeffer's Top Stock Picks for '25

P&G Faces Proxy Battle; Blue Apron Stock Shaken Up By Amazon

Amazon's foray into meal kits is weighing on Blue Apron stock

Managing Editor
Jul 17, 2017 at 9:58 AM
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U.S. stocks are higher this morning, building off of last week's momentum. Among specific equities on the move are blue chip Procter & Gamble Co (NYSE:PG), meal delivery service Blue Apron Holdings Inc (NYSE:APRN), and blue-chip media stock Walt Disney Co (NYSE:DIS). Here's a quick look at what's moving shares of PG, APRN, and DIS.

Procter & Gamble Faces Proxy Battle

Procter & Gamble stock is holding steady around breakeven at $87.10, even as the company faces a proxy fight with billionaire Nelson Peltz's Trian Fund Management. The fund is urging shareholders to vote Peltz into a board seat, which P&G denied him earlier this year, with the activist hoping to boost lagging Procter & Gamble sales. PG shares gapped higher in mid-February, on news that Trian took a stake of more than $3 billion. The stock eventually touched an annual high of $92 on March 17, but has spent the past three months bouncing between support at its 320-day moving average and resistance in the $90 region. However, Procter & Gamble stock tends to heat up in the second half of the year.

In the options pits, traders seem to be especially put-biased. The equity's top-heavy Schaeffer's put/call open interest ratio (SOIR) of 2.35 is in the 93rd percentile of its annual range. This means that short-term option players have rarely been more put-heavy on PG stock in the past 12 months.

Amazon's Giant Shadow Spooking APRN Stock

Blue Apron stock is down 11.1% to trade at $6.54 -- a new all-time low -- amid reports that e-commerce giant Amazon filed for a trademark to enter the food-kit industry. Earlier this year, Blue Apron already had to reduce its initial public offering (IPO) price after Amazon's plans to buy Whole Foods weighed on the grocery sector. Blue Apron shares are now off more than 40% from their all-time high of $11, touched on their first day of trading in late June.

Disney Unveils Star Wars Lands Plans at D23

Disney stock is fractionally higher at $105.06, as traders digest news from the company's D23 Expo, held over the weekend. The fan convention featured a 3-D model for new Star Wars lands, and Walt Disney announced plans for several popular upcoming movies, such as a sequel to Frozen.

It's been a rough few months for DIS stock, which has dropped 10% since its April peak of $116.10, and is now attempting to find support at its year-to-date breakeven level. Analysts remain mostly optimistic, however. More than half of the brokerages covering DIS stock rate it a "buy" or "strong buy."

 
 

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